Mark du Toit from Courtney Capital Private Wealth chose Sappi as his stock pick of the day, while Gerbrand Smit from NEFG Fund Management chose Aspen.
Du Toit said that Sappi was geared towards a weak rand and its latest results were good.
“With the expectations of the rand weakening in the future, Sappi is not expensive as it is trading at R82.20 on an 11 [price-earnings ratio] at the moment.”
Smit said that Aspen, which has transformed its business from producing only generics to an integrated pharmaceutical company, was popular in 2015 and many traders had the shares in their portfolios, which delivered over time.
“Currently, it’s trading at a 15 multiple, but with their results due to come out it will probably drop to a 13 [price-earnings ratio].”